Ford UK secures £1bn government-backed loan to accelerate electric vehicle expansion
UK has secured a further £1 billion in government-backed funding to support its transition to electric vehicle (EV) manufacturing, in a significant vote of confidence for the UK’s automotive industry and export capability.
The latest Export Development Guarantee (EDG), arranged by Citi and backed 80% by UK Export Finance (UKEF), marks the third such facility Ford has received since 2020. With this latest round, total UK government-guaranteed support to Ford now approaches £2.4 billion.
The new funding will play a key role in scaling Ford’s EV production, supporting research and development, and boosting UK exports in the rapidly evolving global automotive market.
Ford employs more than 5,500 people across the UK and is central to the company’s global electrification plans. Its state-of-the-art R&D facility in Dunton, Essex—the UK’s largest automotive research centre—continues to drive advances in smart, connected, and electric vehicle technologies.
In recent years, Ford has made substantial investments to electrify its operations. A £380 million capital injection has transformed its Halewood plant in Merseyside into a cutting-edge facility producing electric power units, replacing traditional transmission manufacturing. The plant will supply next-generation models including the all-electric Ford Transit and Puma.
A further £70 million has been allocated to enhance Ford’s testing and development capabilities in Essex, ensuring the company remains at the forefront of automotive innovation.
Lisa Brankin, Chair of Ford Britain, said: “Recent investments in the UK have proved crucial to our European operations and have expanded our export capability. This new UKEF facility will play an important role in supporting our UK exporting footprint, especially amid continued trade uncertainty and the gap between EV targets and consumer demand.”
The £1 billion loan builds on previous funding rounds:
• June 2022: £750 million EDG with a £600 million UKEF guarantee to scale electric power unit production.
• June 2020: £625 million EDG, with £500 million guaranteed, supporting the development of Ford’s global R&D hub in Essex and wider EV technology programmes.
Business and Trade Secretary Jonathan Reynolds said: “We’re proud of our historic auto sector, and of global companies like Ford that continue to innovate and invest here. I’m delighted that UKEF is backing Ford in supporting the company’s ambitions for growth.”
The government’s support for Ford is part of a wider £2.5 billion commitment to the UK’s green transport transition, including schemes such as the Electric Vehicle Grant, Advanced Manufacturing Plan, and the Modern Industrial Strategy. These initiatives aim to position the UK as a world leader in zero-emission mobility, while creating jobs and delivering long-term growth.
Transport and manufacturing leaders hope the Ford investment will catalyse further private-sector activity and secure the UK’s role in the future of mobility.
Ford UK is also poised to benefit from a landmark UK–US trade deal that reduces export tariffs on vehicles from 27.5% to just 10%. The agreement is forecast to save British car manufacturers hundreds of millions annually and strengthen job security across the automotive supply chain.
With the combined weight of government support, growing global demand for EVs, and improved market access, Ford UK is now in a stronger position than ever to lead Britain’s automotive sector into its next electric chapter.
